GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Sep. 26, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in the carrying amount of goodwill, by reportable segment, were as follows:



	December 31, 2014			Goodwill Resulting from Business Combinations		Impairments		Foreign Currency Translation and Other			September 26, 2015
HVAC segment
Gross goodwill	$	267.5		$	—	$	—	$	(6.0	)	$	261.5
Accumulated impairments	(147.9		)	—		—		2.9			(145.0		)
Goodwill	119.6			—		—		(3.1		)	116.5

Detection and Measurement segment
Gross goodwill	220.2			—		—		(0.6		)	219.6
Accumulated impairments	(139.1		)	—		—		0.5			(138.6		)
Goodwill	81.1			—		—		(0.1		)	81.0

Power segment
Gross goodwill	417.2			—		—		(7.7		)	409.5
Accumulated impairments	(243.5		)	—		—		5.0			(238.5		)
Goodwill	173.7			—		—		(2.7		)	171.0

Total
Gross goodwill	904.9			—		—		(14.3		)	890.6
Accumulated impairments	(530.5		)	—		—		8.4			(522.1		)
Goodwill	$	374.4		$	—	$	—	$	(5.9	)	$	368.5

Other Intangibles, Net

Identifiable intangible assets at September 26, 2015 and December 31, 2014 comprised the following:



	September 26, 2015							December 31, 2014
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Intangible assets with determinable lives:
Customer relationships	$	25.4	$	(9.2	)	$	16.2	$	25.4	$	(8.2	)	$	17.2
Technology	41.0		(24.7		)	16.3		42.1		(23.7		)	18.4
Patents	4.6		(4.6		)	—		4.6		(4.6		)	—
Other	14.1		(7.9		)	6.2		14.2		(7.5		)	6.7
	85.1		(46.4		)	38.7		86.3		(44.0		)	42.3
Trademarks with indefinite lives	125.5		—			125.5		126.9		—			126.9
Total	$	210.6	$	(46.4	)	$	164.2	$	213.2	$	(44.0	)	$	169.2

At September 26, 2015, the net carrying value of intangible assets with determinable lives consisted of $4.8 in the HVAC segment, $0.4 in the Detection and Measurement segment and $33.5 in the Power segment. At September 26, 2015, trademarks with indefinite lives consisted of $84.0 in the HVAC segment, $11.7 in the Detection and Measurement segment and $29.8 in the Power segment.

We perform our annual goodwill impairment testing during the fourth quarter in conjunction with our annual financial planning process, with such testing based primarily on events and circumstances existing as of the end of the third quarter. In addition, we test goodwill for impairment on a more frequent basis if there are indicators of potential impairment. A significant amount of judgment is involved in determining if an indication of impairment has occurred between annual testing dates. Such indications may include: a significant decline in expected future cash flows; a significant adverse change in legal factors or the business climate; unanticipated competition; and a more likely than not expectation of selling or disposing all, or a portion, of a reporting unit.

As indicated in Note 1, in connection with the change in reportable segments, we reallocated goodwill among certain of our reporting units based on the respective fair values of such reporting units. No indicators of impairment resulted from this reallocation of goodwill; however, the estimated fair values of two reporting units within our Power reportable segment exceed the carrying value of their respective net assets by less than 10%, with aggregate amount of goodwill totaling $39.5 at September 26, 2015.

We perform our annual trademarks impairment testing during the fourth quarter, or on a more frequent basis if there are indications of potential impairment. The fair values of our trademarks are determined by applying estimated royalty rates to projected revenues, with the resulting cash flows discounted at a rate of return that reflects current market conditions.

As indicated in Note 1, we understated a fourth quarter 2014 impairment charge relating to certain of our trademarks by $2.5. We have corrected this misstatement in the accompanying condensed consolidated financial statements through a reduction of “Intangibles, net” and “Retained earnings” as of December 31, 2014. See Note 16 for additional information on the impact of this correction. Other changes in the gross carrying value of trademarks and other identifiable intangible assets related to foreign currency translation.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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